Can we work with ShapeShift? It’s a very neat service, but I perceive it to be lacking in aspects as conversion rate and liquidity. If we help provide liquidity and they have an appropriate rate for customers I could see it being used more to the benefit of both.
Update: Apparently, ShapeShift works with bots on Poloniex, so in effect we are already providing liquidity.
Potential improvements of service
Consistent conversion rate within the confines of our peg.
More and reliable amount of liquidity, potentially leading to more trading and profit for the service and Nu.
Sidenote: We should tell ShapeShift to capitalise NuBits correctly. Currently “Nubits”. Same with “Maidsafe”, whereas “BitCrystals” is according to that community, so they’re not just being internally consistent.
I don’t know it, it’s my perception from having wanted to use it in the past. But I don’t remember exactly what the problem was. Oh, it was just broken when I posted apparently.
Anyhow, the point is to make ShapeShift (or alternatives) a place I can conveniently convert to and from NuBits at a reasonable rate, and rely on it having liquidity available at all or at least most times, or else people will not keep going there and use exchanges instead. I imagine some kind of deal would make that more likely.
You may well not believe that is a good idea, but I’d like to know why.
NuLagoon Tube doesn’t convert between all the coins that ShapeShift does, only Bitcoin. If NuLagoon adds support for more coins, that might be the better alternative, but that seems far away if not already superseded by BCE by then.
You need to add something on top of NuLagoon Tube to reproduce a ShapeShift-like service. If a merchant asks for an amount of BTC, there must a guarantee that the NBT you send in will give you exactly that much BTC, and that amount must be decided upon a negotiation with NuLagoon Tube. Currently such guarantee is not provided.
Making this work would actually introduces arbitrage risk for the service, particularly because the user has a choice to not send in the funds. So some risk control is needed. The infrastructure will end up pretty complex, but it should be worthwhile for Nu to build it with BCE in mind.
My T3 service works this way. I deal with the arbitrage by manually agreeing to trades and keeping track of those that miss their tickets. If you miss your ticket I’ll trust you less, meaning i might charge a higher spread.